Press Coverage

Hungarian SME venture fund Primus Capital III buys into call center firm,
plans two more deals by end-July

Source: DealWatch
June 9, 2010 (10:11)

Jun 9, 2010 (DW) - Hungarian venture capital firm Primus Capital's HUF 6.2bn (EUR 21.9mn) Primus III fund has signed its first investment and plans to announce two further local SME transactions, with a total value over HUF 900mn (EUR 3.2mn), by the end of July, the fund's senior executive has told DealWatch.

"The first deal will involve us investing a total of HUF 170mn (EUR 0.6mn) in development capital in call center service provider Comforce Kft in several phases, through which we will gain a stake of around 46% in the company," said Managing Partner Zoltan Bruckner.

Primus will gain a 26% ownership stake in Comforce via an initial HUF 70mn (EUR 0.25mn) capital rise, planned for June.

"The next, HUF 100mn (EUR 0.35mn) investment phase could take place in either one or two phases in Q4 this year, but more likely in 2011, depending on the market environment," he added.

Comforce was established in March 2008 by Laszlo David Papp and Sandor Tasnadi. It had registered aggregate revenue of HUF 180mn (EUR 0.64mn) by April this year.

The company provides telemarketing, customer service and other call center services. It will use the new funds to expand its client base, technological and organizational developments and preparation for international expansion.

The Primus III fund was registered in April. It is one of eight Hungarian venture capital funds that won EU funds through the JEREMIE program, with the latter providing HUF 4.34bn (EUR 15.3mn) of Primus III's capital.

MORE INVESTMENT IN THE PIPELINE Primus is also close to finalizing two other deals from its III fund. These will be announced during the next few weeks and will have a total investment value of over HUF 900mn (EUR 3.2mn), Bruckner said.

"The first will be a life sciences firm with a self-developed technology, where our investment will be HUF 400mn (EUR 1.4mn), and we will gain a stake of around 45%."

The investment will involve HUF 370mn (EUR 1.3mn) in capital and HUF 30mn (EUR 0.1mn) in the form of a loan. Primus has already made a binding offer and approved the investment decision, with the deal now in the documentation phase. An announcement is expected before the end of June.

Primus is also in advanced talks over investment of more than HUF 500mn (EUR 1.77mn) in an online content distribution technology firm. This deal is expected to close in July.

"We also have a very strong pipeline of deals, with more than 20 companies in our focus, and I believe that we will make one or two other investments this year besides the ones mentioned," concluded Bruckner.